
	*** create plots for Appendix

 		
		
	 

**** load relevant data

		
****** Figure A.2:   Dawes Mark-Reichsmark exchange rate
	
					use "$Replicationdirectory/_Work/TEMP/DMRMrate" , clear

					
				   tsline RateRegisterRM, color(black) tlabel(01jan1935 "1935" 01jan1936 "1936" 01jan1937 "1937" 01jan1938 "1938" 01jan1939 "1939" 01jan1940 "1940" ,angle(45) labsize(mediumsmall) )  ytitle("{stMono: Registermark/Official RM}") xtitle("") ysize(6) xsize(12)
				   
				   
				   graph export "$Replicationdirectory/_Work/Output/Appendices/Figures/FigureA2_Registermark.pdf", replace
		   
		   
		   
		
 		
		
***** Figure A.3: Nonzero trading days  
								
							 
		
							use "$Replicationdirectory/_Work/TEMP/_data_bonds", clear
			
							*label data 
							label var liquitdity_60ma_london "London"
							label var liquitdity_60ma_paris "Paris"
							label var liquitdity_60ma_amsterdam "Amsterdam"
							label var liquitdity_60ma_zurich "Zurich"

										
										
				 
							
							twoway (line  liquitdity_60ma_london liquitdity_60ma_paris liquitdity_60ma_amsterdam liquitdity_60ma_zurich   date  , 	  	xsize(8)	 lpattern(solid solid solid solid) lcolor( blue red dkorange green)  		bgcolor(white)  graphregion(color(white))  bgcolor(white)  bgcolor(white) tline(14jun1934, lp(solid) lc(black) ) 	tlabel(01jan1930 "1930" 01jan1931 "1931" 01jan1932 "1932" 01jan1933 "1933" 01jan1934 "1934" 01jan1935 "1935" 01jan1936 "1936" 01jan1937 "1937" 01jan1938 "1938" 01jan1939 "1939" ,angle(45) labsize(mediumsmall) ) xtitle("Year") legend(c(1)  size(small) region(lcolor(none) ) pos(3) )  ytitle("% of non-zero return days") )
							graph export "$Replicationdirectory/_Work/Output/Appendices/Figures/FigureA3_LIQ.pdf", replace
	
	
	
 




***** Figure B2: Bonds in Zurich 

							label var P_zurich_CHF_CHF "Dawes price in Zurich (CHF tranche)"
							label var P_zurich_GBP_GBP "Dawes price in Zurich (GBP tranche)"


							line P_zurich_CHF_CHF   P_zurich_GBP_GBP date if tin(03jan1930,1Jun1939)    ,  xsize(8) lpattern(solid dash) lcolor(green green)  bgcolor(white)  graphregion(color(white))  bgcolor(white)  bgcolor(white)  tline(21sep1931, lp(solid) lc(black) ) 	 tline(14jun1934, lp(dash) lc(black) ) tline(17apr1935, lp(solid) lc(black) ) 	    	tlabel(01jan1930 "1930" 01jan1931 "1931" 01jan1932 "1932" 01jan1933 "1933" 01jan1934 "1934" 01jan1935 "1935" 01jan1936 "1936" 01jan1937 "1937" 01jan1938 "1938" 01jan1939 "1939" ,angle(45) labsize(mediumsmall)) ytitle("% of par") xtitle("Year")   legend(c(2)  size(small) region(lcolor(none))  position(6)) 
							graph export "$Replicationdirectory/_Work/Output/Appendices/Figures/FigureB2_ZurichMarket.pdf", replace
						
						
						 
	  
		
		
		
***** Figure B3: Market risk (3 measures)
 						
						
						use "$Replicationdirectory/_Data/Market risk premia/Market_Risk_Premia", clear
							
						encode iso, gen(iso_enc)
						xtset iso_enc year 
						
						sort iso_enc
							
						keep if iso=="FRA" | iso=="GBR"	
						
						replace iso="France" if iso=="FRA"
						replace iso="UK" if iso=="GBR"
						
						gen order=1 if iso=="GBR"	
						replace order=2 if iso=="FRA"	
						 gsort -iso
						keep if tin(1930,1938)
						
						*collapse (mean) bspread  rp_eqhous eq_dp, by(iso)
						
						foreach x in bspread eq_dp rp_eq rp_eqhous {
							replace `x'=`x'*100
						}
							
						graph bar (mean) bspread       ,  over(iso, sort(  order ) )   ascategory asyvars	bar(2, fcolor(blue)) bar(1, fcolor(red)) legend( region(lcolor(none)))  bargap(5)  ytitle("") title("{stMono:Corporate bond}"  "{stMono:spread}") xsize(4)
						graph save  "$Replicationdirectory/_Work/TEMP/RISK_corpbondspread",    replace
						
 						graph bar (mean)   rp_eqhous    , over(iso, sort(  order ) ) ascategory asyvars	bar(2, fcolor(blue)) bar(1, fcolor(red))  legend( region(lcolor(none)))    bargap(5)  ytitle("") title("{stMono:Risk premium}" "{stMono:(equity+housing)}" ) xsize(4)
						graph save "$Replicationdirectory/_Work/TEMP/RISK_riskpremium", replace 
						
						graph bar (mean)  eq_dp    , over(iso_enc,  sort(  order ) ) ascategory asyvars xsize(4)	bar(2, fcolor(blue)) bar(1, fcolor(red)) legend( region(lcolor(none))) bargap(5)  ytitle("") title("{stMono:Dividend-price}" "{stMono:ratio}")
						graph save "$Replicationdirectory/_Work/TEMP/RISK_dpratio", replace 
	
							
						
						
						
						grc1leg      "$Replicationdirectory/_Work/TEMP/RISK_riskpremium"    "$Replicationdirectory/_Work/TEMP/RISK_dpratio"  "$Replicationdirectory/_Work/TEMP/RISK_corpbondspread.gph",    ring(1)  	l1("{stMono: Percent }")					cols(3)	xsize(20)	
						graph export  "$Replicationdirectory/_Work/Output/Appendices/Figures/FigureB3_marketrisk_measures.pdf", replace
											 		
	
		

		   
****** Figure B4: Yield to maturity for other risky bonds
		
					
					
					foreach x in "Portugal" "Argentina" "China" "Brazil"{
						clear
																		import delimited "$Replicationdirectory/_Data/Yield to maturity/YTM_riskybonds_YTM_RB_`x'.csv",      varnames(1) case(preserve)
																		destring YTM*, replace force
																		generate DATE=date(Date,"DMY") 
																		format DATE %d
																		drop Date
																		rename DATE Date
																		gen BOND="`x'"
																		save "$Replicationdirectory/_Work/TEMP/`x'_RISKYBOND", replace
																		}
																		
																		 
																		
							foreach x in "Portugal" "Argentina" "China"  {
							
								merge 1:1 Date using "$Replicationdirectory/_Work/TEMP/`x'_RISKYBOND"
								drop _merge
							}
							
							rename Date weekday
							  
							merge 1:1 weekday using "$Replicationdirectory/_Work/TEMP/_data_bonds.dta"
								
							drop if _merge!=3
							
								
												drop _merge
				
							
							rename weekday daten
							merge 1:1 daten using "$Replicationdirectory/_Work/TEMP/_data_consol_daily.dta"
							drop if _merge!=3			
							
											keep daten default y_consol_Paris_lastavail y_consol_London_lastavail YTM_RB_Brazil_Paris YTM_RB_BrazilLondon YTM_RB_Portugal_Paris YTM_RB_PortugalLondon YTM_RB_Argentina_Paris YTM_RB_ArgentinaLondon YTM_RB_China_Paris YTM_RB_ChinaLondon ytm_london_lastavail ytm_paris_lastavail ytm_amsterdam_lastavail ytm_zurich_lastavail
					
								
								rename ytm_paris_lastavail YTM_RB_Dawes_Paris
								rename ytm_london_lastavail YTM_RB_Dawes_London
								
								foreach x in "Portugal" "Argentina" "China" "Brazil"{
									rename YTM_RB_`x'London YTM_RB_`x'_London 
									replace YTM_RB_`x'_London=100*YTM_RB_`x'_London 
									replace YTM_RB_`x'_Paris=100*YTM_RB_`x'_Paris
								}
								
								foreach x in "Portugal" "Argentina" "China" "Brazil" "Dawes"{		
									gen spread_LP_`x'=YTM_RB_`x'_Paris-YTM_RB_`x'_London
									gen spread_SR_London_`x'=YTM_RB_`x'_London-y_consol_London_lastavail
									gen spread_SR_Paris_`x'=YTM_RB_`x'_Paris-y_consol_Paris_lastavail
								}
								
								
								* weights with Debt outstanding in 1927
								gen w_Portugal=  19530500/67932380
								gen w_Argentina=    6437800  /67932380
								gen w_China=   24495780 /67932380
								gen w_Brazil=   17468300 /67932380
								
								
								gen spread_SR_London_Basket=(w_Portugal*spread_SR_London_Portugal+w_Argentina*spread_SR_London_Argentina+w_China*spread_SR_London_China+w_Brazil*spread_SR_London_Brazil )
								gen spread_SR_Paris_Basket= (w_Portugal*spread_SR_Paris_Portugal+w_Argentina*spread_SR_Paris_Argentina+w_China*spread_SR_Paris_China+w_Brazil*spread_SR_Paris_Brazil)
						 
								 
								 keep daten spread_SR* spread_LP_* default
								
								tsset daten
								
								collapse (mean) spread_SR* spread_LP_*, by(default)
					
								reshape long spread_SR_London_ spread_SR_Paris_ spread_LP_, i(default) j(Bond) string
								 
								gen defaultstring="Jan-May 1934"  if default==0
								replace defaultstring="June-Dec 1934"  if default==1
								
													keep if Bond=="Dawes" | Bond=="Basket"
										graph bar spread_SR_London_ spread_SR_Paris_  if Bond=="Dawes" ,  bar(1, fcolor(blue)) bar(2, fcolor(red)) ylabel(0(2)16) over(defaultstring ) ytitle("") legend( region(lcolor(none)) order(1 "London" 2 "Paris") col(2) angle(45) pos(12) ring(3)  ) title("{stMono:Dawes}")  
												graph save "$Replicationdirectory/_Work/TEMP/APP_DAWES_ytm1934",    replace

										graph bar spread_SR_London_ spread_SR_Paris_  if Bond=="Basket" , bar(1, fcolor(blue)) bar(2, fcolor(red)) ylabel(0(2)16) over(defaultstring ) ytitle("") legend(  region(lcolor(none)) order(1 "London" 2 "Paris") col(2) angle(45)  ) title("{stMono:Risky bond portfolio}")
												graph save "$Replicationdirectory/_Work/TEMP/APP_RIskybonds_ytm1934",    replace
								
 
						
								grc1leg      "$Replicationdirectory/_Work/TEMP/APP_RIskybonds_ytm1934.gph" "$Replicationdirectory/_Work/TEMP/APP_DAWES_ytm1934.gph" ,  	b1title("{stMono:Traded in...}") ring(1)  	l1("{stMono: ytm-r (in percentage points)}")			 	legendfrom("$Replicationdirectory/_Work/TEMP/APP_RIskybonds_ytm1934.gph")  
											 graph export "$Replicationdirectory/_Work/Output/Appendices/Figures/FigureB4_RiskybondsvsDawes.pdf", replace
											 
  
 

 		
		
***** Table B1: Price-drop-coupon-ratios
								
							clear 
		
							use "$Replicationdirectory/_Work/TEMP/_data_bonds"
							
							keep if month==4 | month==10
							
							gen day = day(date)
							
							* # payment 1  (April 1930)
							
 							 

							
							foreach market of global markets{
								
								gen payment_cum_`market'=.
								gen payment_ex_`market'=. 
							}
							
							foreach market in paris london   {
								
								* payment 1
								replace payment_cum_`market'=1 if  year==1930 & month==4 & day==14
								replace payment_ex_`market'=1  if year==1930 & month==4 & day==15
								
								* payment 2
								replace payment_cum_`market'=1 if  year==1930 & month==10 & day==14
								replace payment_ex_`market'=1  if year==1930 & month==10 & day==15								
 
								* payment 3
								replace payment_cum_`market'=1 if  year==1931 & month==4 & day==14
								replace payment_ex_`market'=1  if year==1931 & month==4 & day==15
								
								* payment 4
								  replace payment_cum_`market'=1 if  year==1931 & month==10 & day==14
								  replace payment_ex_`market'=1  if year==1931 & month==10 & day==15
																
								* payment 5
								 replace payment_cum_`market'=1 if  year==1932 & month==4 & day==14
								 replace payment_ex_`market'=1  if year==1932 & month==4 & day==15
	
								* payment 6
								 replace payment_cum_`market'=1 if  year==1932 & month==10 & day==14
								 replace payment_ex_`market'=1  if year==1932 & month== 10 & day==17
	
								* payment 7
								 replace payment_cum_`market'=1 if  year==1933 & month==4 & day==13
								 replace payment_ex_`market'=1  if year==1933 & month==4 & day==18

								* payment 8
								 replace payment_cum_`market'=1 if  year==1933 & month==10 & day==13
								 replace payment_ex_`market'=1  if year==1933 & month==10 & day==16
								
								* payment 9
								 replace payment_cum_`market'=1 if  year==1934 & month==4 & day==13
								 replace payment_ex_`market'=1  if year==1934 & month==4 & day==16
	
								* payment 10
								 replace payment_cum_`market'=1 if  year==1934 & month==10 & day==14
								 replace payment_ex_`market'=1  if year==1934	 & month==10 & day==16

								* payment 11
								 replace payment_cum_`market'=1 if  year==1935 & month==4 & day==12
								 replace payment_ex_`market'=1  if year==1935 & month==4 & day==15
								
								
								* payment 12
								 replace payment_cum_`market'=1 if  year==1935 & month==10 & day==14
								 replace payment_ex_`market'=1  if year==1935 & month==10 & day==15
	
								* payment 13
								 replace payment_cum_`market'=1 if  year==1936 & month==4 & day==14
								 replace payment_ex_`market'=1  if year==1936 & month==4 & day==15

								* payment 14
								 replace payment_cum_`market'=1 if  year==1936 & month==10 & day==14
								 replace payment_ex_`market'=1  if year==1936 & month==10 & day==15
								
								
								* payment 15 - check French data 
								 replace payment_cum_london=1 if  year==1937 & month==4 & day==14
								 replace payment_cum_paris=1 if  year==1937 & month==4 & day==14

								 replace payment_ex_london=1  if year==1937 & month==4 & day==15
								 replace payment_ex_paris=1  if year==1937 & month==4 & day==19 

								  
	
								* payment 16
								 replace payment_cum_`market'=1 if  year==1937 & month==10 & day==14
								 replace payment_ex_`market'=1  if year==1937 & month==10 & day==15

								* payment 17 (Easter holiday around payment) 
								 replace payment_cum_`market'=1 if  year==1938 & month==4 & day==14
								 replace payment_ex_`market'=1  if year==1938 & month==4 & day==20
								 
								* payment 18  
								 replace payment_cum_`market'=1 if  year==1938 & month==10 & day==14
 
 								 replace payment_ex_`market'=1  if year==1938 & month==10 & day==17 
 
 
								* payment 19
								 replace payment_cum_`market'=1 if  year==1939 & month==4 & day==14
								 replace payment_ex_`market'=1  if year==1939 & month==4 & day==17

 	
								 
								 								
								gen coupon_biannual_`market'=annual_coupon_`market'/2
								
							}
							
							 
							foreach market in paris london   {

							
 							gen P_cumCoupon_`market'=P_`market'_GBP_GBP_lastavail 			if payment_cum_`market'==1
							gen P_exCoupon_`market'= P_`market'_GBP_GBP_lastavail			if payment_ex_`market'==1
							
							} 
							
							egen payment_group=group(month year)		

							  
							 collapse P_cumCoupon_* P_exCoupon_* coupon_biannual_*  date  , by(payment_group)
							 
							 sort date 
							 
							 drop payment_group
							 	gen payment=_n		

							 reshape long P_cumCoupon_ P_exCoupon_ coupon_biannual_    ,i(payment  ) j(market) string

							
							
 
							
 						 
 							
							gen default=1 if payment>=10
							replace default=0 if default==.
							
							gen classic=(P_cumCoupon_-P_exCoupon_)/coupon_biannual_
							
						 	
							gen paris=1 if market=="paris"
							replace paris=0 if paris==.
							
							eststo clear 
								
								eststo PDC_ratio1: reg classic paris if   default==0  							
								eststo PDC_ratio2:reg classic paris if   default==0  & payment!=7
								eststo PDC_ratio3:reg classic paris if   default==1   

								
							 
							esttab    using "$Replicationdirectory/_Work/Output/Appendices/Tables/Table_B1_DifferencePDCratio.rtf", ///
						drop(    _cons) replace b(3) se(3) onecell label compress stats(   N     r2 , fmt(%18.2g ))  ///  
 										
							
							
							

  
							
							